K-Electric seeks 53.9 paisa per unit increase in tariff

NEPRA will hold public hearing on December 17 to take decision

ISLAMABAD: Unlike the tariff cut for consumers of state-owned power distribution companies, people living in Karachi are likely to face an increase in electricity price because of fuel price adjustment for October 2015.

For the distribution companies, the National Electric Power Regulatory Authority (Nepra) had reduced the tariff by Rs1.81 per unit for October in line with the actual cost of fuel used to produce electricity.

However, the consumers of K-Electric may have to pay an additional 53.9 paisa per unit for the month depending on the regulator’s decision.

The management of K-Electric has submitted a petition with Nepra, seeking the tariff increase for bearing a higher-than-estimated cost of fuel. Nepra will hold a public hearing on December 17 to take a decision on the tariff revision.

In the petition, K-Electric pointed out that it faced a fuel cost variation of Rs851.9 million in electricity generation from external and internal resources.

According to the company, a cost variation of Rs23.28 million was on account of power generation from internal resources, which translated into 1.47 paisa per unit. In power production from external resources, the fuel cost variation was Rs828.6 million, which resulted in an increase of 52.47 paisa per unit compared to the cost of generation in September.

During October, K-Electric supplied 1,579.25 million units of electricity to the consumers.

Published in The Express Tribune, December 9^th, 2015.

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